What is primary cost center in SAP SRD-FIN-COR - FIN-Cost and Revenue?

SAP Term: primary cost center

• Component: SRD-FIN-COR

• Component Name: FIN-Cost and Revenue

• Description: A cost center whose costs are allocated directly to cost objects. Primary cost centers receive distributions of overhead from support cost centers.

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• Key Concepts: 
  A primary cost center is a type of cost center in SAP that is used to track and manage costs associated with a particular area of a business. It is the most important type of cost center and is used to allocate costs to other cost centers. It is also used to track and manage expenses, such as salaries, materials, and overhead costs. 
  
  How to use it: 
  In SAP, primary cost centers are created in the Cost Center Master Data (CCMD) application. This application allows users to create, edit, and delete cost centers. Once created, the primary cost center can be used to allocate costs to other cost centers. This can be done by assigning a percentage of the total cost to each cost center. 
  
  Tips & Tricks: 
  When creating a primary cost center in SAP, it is important to ensure that the correct information is entered into the system. This includes the name of the cost center, its description, and its associated account codes. Additionally, it is important to ensure that the correct percentage of costs are allocated to each cost center. 
  
  Related Information: 
  Primary cost centers are part of the SAP SRD-FIN-COR FIN-Cost and Revenue Accounting component. This component also includes other types of cost centers such as secondary cost centers and overhead cost centers. Additionally, this component includes features such as budgeting and forecasting tools that can be used to manage costs more effectively.